The Chairman of the Joint Tax Board (JTB), Dr. Zacch Adedeji, has called on board officials to organise traders and artisans into formal groups before integrating them into the tax system.
Dr. Adedeji, who also chairs the Federal Inland Revenue Service (FIRS), made this appeal during the 157th meeting of the JTB held in Ibadan on Monday. He emphasized that this approach aligns with President Bola Tinubu’s directive to focus on taxing prosperity rather than poverty.
Speaking on the meeting’s theme, “Taxation of the Informal Sector: Potentials and Challenges”, Adedeji underscored the importance of formalising informal economic activities before any taxation strategy is considered.
“What I expect from this JTB meeting is not a framework to tax the informal sector, but a strategy to integrate them formally into the economy,” he stated. “Our role as revenue administrators is to structure the informal sector so it aligns with existing tax laws—not to target market men and women for tax collection.”
Citing the National Bureau of Statistics (NBS) report from Q1 2023, Adedeji noted that informal employment constituted 92.6% of Nigeria’s employed population. He added that recognising and formalising this sector is key to addressing unemployment and improving revenue collection.
Adedeji also revealed that the JTB is evolving into the Joint Revenue Board, with a broader mandate and responsibilities. He expressed optimism that the Joint Revenue Board (Establishment) Bill would be signed into law by President Tinubu before the board’s next meeting.
“These meetings provide a valuable forum for members to discuss and find solutions to current and emerging taxation issues,” he added.
In his address, Oyo State Governor Seyi Makinde described the meeting’s theme as timely, aligning with his state’s objective of boosting internally generated revenue.
He stressed the need for innovative solutions to manage informal sector taxation, emphasizing that Nigeria’s economic growth depends on knowledge, skills, and production—not just natural resources.
Makinde advocated for simplifying the tax process, offering compliance incentives such as access to loans and empowerment programs, and using data-driven approaches to improve tax administration.
Also speaking at the event, the Executive Chairman of the Oyo State Board of Internal Revenue, Mr. Olufemi Awakan, said the meeting aimed to develop a more effective and efficient tax system nationwide. He urged attendees to address challenges like tax jurisdiction and coordination among different levels of government.
The event was attended by tax administrators from all 36 states, underlining its national significance.
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